Father and son are charged with running $2.1M Jersey City condo scam

JERSEY CITY — State prosecutors say a father and son from northern New Jersey used their construction companies to swindle clients and a bank involved in a $2.1 million condominium project in Jersey City.

David Garsia Sr., a 70-year-old North Haledon resident, and his 42-year-old son, David Jr. of Glen Rock were charged Friday with conspiracy, money laundering, theft, securities fraud, misapplication of entrusted property and misconduct by corporate officials.

They face up to 20 years in prison if convicted on the most serious charges. Five Paterson-based companies they own also face charges, and the state has filed a civil forfeiture action to seize and restrain assets of all of the individual and corporate defendants.

The filing claims those assets are the "proceeds and instrumentalities" of criminal conduct.

Prosecutors say the pair spent the money they got on fur, jewelry and other expenses, as well as other projects.

Phone numbers for the Garsias could not be located on Saturday, and their attorneys did not return calls seeking comment. Bail for each was set at $500,000 and they were ordered to surrender their U.S. passports.

The charges stem from an agreement the Garsias reached in 2006 to renovate an existing building and construct 19 condominium units.

Prosecutors say the Garsias deceived a developer into hiring them by making numerous misrepresentations and also deceived a Clinton bank to obtain financing for the project, then diverted funds from the project and laundered it through their various companies.

Prosecutors say the Garsias used those firms to claim that no subcontractors were needed for the project. They also produced falsified documents about their credentials to obtain the contract and falsely claimed the younger Garsia was a licensed engineer and architect, prosecutors said.

The pair later produced false expense and work reports to obtain financing from the bank. The documents falsely claimed that insulation, fireproofing, ventilation and sprinkler systems had been installed at the site.